Big return of foreign investors in the stock market, huge amount invested in the last 1.5 months!

The Indian stock market has once again returned to its glory. Foreign investors, who had been cautious about the market for some time, have suddenly changed their stance. Within just a week, foreign institutional investors (FIIs) have made a huge investment of more than $1 billion in Indian stocks. According to Bloomberg data, this is the largest purchase made by foreign investors in any one week since June 2025. This is a big relief news for investors, because when foreign investors invest money in the market, the portfolios of small investors also get direct benefit from it and the market gets a new lease of life.

The story of boom is hidden in the figures

This spectacular return of foreign investors is not just a one-day trend. In just four days till July 9, global funds have bought Indian shares worth $1.3 billion. Apart from this, preliminary provisional data released on Friday showed that these investors bought more shares worth $272 million. This is the fourth consecutive week when foreign investors remain net buyers in the Indian market. From the common man’s point of view, the arrival of this huge amount of money in the market provides a strong support to the shares of the companies, which strengthens the possibility of improving the savings of retail investors and the returns of mutual funds.

Changed perspective of brokerage firms

The strategists of the world’s renowned brokerage firm Goldman Sachs have given concrete reasons behind this investment in a note issued on July 11. According to him, India’s economic picture has seen considerable improvement in recent weeks. Commodity prices have declined and the rupee has stabilized against the dollar. Along with this, strong domestic growth rate and expectations of better earnings of companies in the second quarter have won back the confidence of foreign investors. Citigroup has also expressed its positive opinion about the Indian market and said that the profit potential compared to the risk here is quite favorable. Looking at the earnings estimates of the companies, the current valuation of the market seems absolutely justified.

Great recovery of Nifty

This withdrawal of foreign funds is directly providing energy to the major indices of the stock market. Since hitting its one-year low in April this year, the Nifty 50 index has seen a spectacular rise of about 8 percent. Falling crude oil prices and stabilizing rupee are continuously improving the earnings outlook of the corporate world. When the financial condition of companies strengthens, the direct benefits accrue to common shareholders in the form of increasing value of their investments.

understand the other side of the picture

According to the data, despite four consecutive weeks of bumper buying, foreign investors are still net sellers of shares worth about $27 billion throughout the year. This simply means that foreign investment has started coming into the market, but the market will have to wait a little longer for the full compensation of the huge amount of money that was withdrawn earlier and for a long lasting boom.

Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.